Abstract:Under the background of the disappearance of demographic dividend in China and the increasing trend of the aging era, studying the impact mechanism of the Chinese real estate market from the perspective of population structure and urbanization can enrich the theoretical research. Based on the life cycle hypothesis, this paper builds an overlapping generation model that includes housing demand, uses provincial panel data of China from 2000 to 2021, and analyzes the impact of urbanization and population structure on housing prices using the panel instrumental variable method. We find that the movement of the labor force under urbanization has a significant positive effect on housing prices; the demographic structure measured by the cost of maintenance also has a positive impact on housing prices. Our robustness tests on the regional level show that compared to other regions, urbanization, and the population structure have stronger impacts in the eastern region. Finally, we use the spatial panel model to find significant cross-regional spillover effects on housing prices.